Treasury Yield Creeping Up While Mortgage Refinance Rates Level
The 10-Year Treasury Yield has breached 3.5% to the upside intra day, a level we have not witnessed since last November. Part of the reason for the reversal in fortune is due to the major upswing in the stock market off its 2009 lows. As investment money flows back into stocks, it is taken out of government bonds. Also, the government bond buy-back program is running its course as of late. As more US bond supply hits the market (to pay for the immense government spending programs), bond prices continue to drop and the yield increases.
Normally, a significant rise in the 10 Year Treasury Yield would result in higher mortgage rates, but this latest bump-up in the yield has been tempered by what appears to be a drop in the mortgage spread premium, which is keeping refinance rates at nice levels still.
With that said, it might be a good time to lock that rate now, if you are qualified for a current mortgage rate producing a nice financial benefit for you. If the government does not announce any more buy-backs or toxic debt fixes in the near future, interest rates could go up rather sharply because the housing and job markets are still projected for further pain.
U.S. home prices are at levels not seen since the end of 2002. The Standard & Poor's/Case-Shiller National Home Price index reported home prices tumbled by 19.1 percent in the first quarter 2009 compared to the first quarter last year, the largest drop in its 21-year history. Home prices have fallen 32.2 percent since peaking in the second quarter of 2006.
Unfortunately, there is still no evidence of a bottoming in the housing markets.
That’s the bad news, but for those with equity in their homes, refinancing into lower rates is still looking great. Remember that for cash-out refinances, you will pretty much be limited to 85 percent of the value of your home. For higher LTV Rate/Term refinances, FHA is still offering great mortgage rates at up to 97 percent of the value of your home.
If you are considering a refinance now and need some help, have questions, or need some competitive rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
Normally, a significant rise in the 10 Year Treasury Yield would result in higher mortgage rates, but this latest bump-up in the yield has been tempered by what appears to be a drop in the mortgage spread premium, which is keeping refinance rates at nice levels still.
With that said, it might be a good time to lock that rate now, if you are qualified for a current mortgage rate producing a nice financial benefit for you. If the government does not announce any more buy-backs or toxic debt fixes in the near future, interest rates could go up rather sharply because the housing and job markets are still projected for further pain.
U.S. home prices are at levels not seen since the end of 2002. The Standard & Poor's/Case-Shiller National Home Price index reported home prices tumbled by 19.1 percent in the first quarter 2009 compared to the first quarter last year, the largest drop in its 21-year history. Home prices have fallen 32.2 percent since peaking in the second quarter of 2006.
Unfortunately, there is still no evidence of a bottoming in the housing markets.
That’s the bad news, but for those with equity in their homes, refinancing into lower rates is still looking great. Remember that for cash-out refinances, you will pretty much be limited to 85 percent of the value of your home. For higher LTV Rate/Term refinances, FHA is still offering great mortgage rates at up to 97 percent of the value of your home.
If you are considering a refinance now and need some help, have questions, or need some competitive rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
Labels: business, economy, fha refinance, finance, home loans, money, mortgage rates, refinance, refinance rates, refinancing
posted by Jim Bisnett at
11:01 AM
0 Comments:
Post a Comment
<< Home